Startup Burn Rate Calculator

Startup Burn Rate Calculator estimates monthly burn, runway, and cash efficiency using expenses, revenue, and funding for financial planning.

Employee Costs (USD/month):

Operational Costs (USD/month):

Marketing Expenses (USD/month):

Monthly Revenue (USD/month):

Current Cash Reserves (USD):

Additional Funding (USD):

Formulas Used in Startup Burn Rate Calculator

The calculator uses the following formulas to estimate burn rate and runway:

Gross Burn Rate:

\\[ B_g = E + O + M \\]

Net Burn Rate:

\\[ B_n = B_g – R \\]

Runway:

\\[ T = \frac{C + F}{B_n} \\]

Cash Efficiency Score:

\\[ S = \min\left(100 \cdot \frac{T}{T_{\text{max}}}, 100\right) \\]

Where:

\\( B_g \\): Gross burn rate (USD/month)
\\( E \\): Employee costs (USD/month)
\\( O \\): Operational costs (USD/month)
\\( M \\): Marketing expenses (USD/month)
\\( B_n \\): Net burn rate (USD/month)
\\( R \\): Monthly revenue (USD/month)
\\( T \\): Runway (months)
\\( C \\): Current cash reserves (USD)
\\( F \\): Additional funding (USD)
\\( S \\): Cash efficiency score (%)
\\( T_{\text{max}} \\): Maximum reference runway (24 months)

Example Calculations For Startup Burn Rate Calculator

Example 1: Early-Stage Startup, No Revenue

Input: Employee Costs = 20000 USD/month, Operational Costs = 10000 USD/month, Marketing Expenses = 5000 USD/month, Monthly Revenue = 0 USD/month, Cash Reserves = 100000 USD, Additional Funding = 0 USD

\\[ B_g = E + O + M = 20000 + 10000 + 5000 = 35000 \ \text{USD/month} \\] \\[ B_n = B_g – R = 35000 – 0 = 35000 \ \text{USD/month} \\] \\[ T = \frac{C + F}{B_n} = \frac{100000 + 0}{35000} = 2.86 \ \text{months} \\] \\[ S = \min\left(100 \cdot \frac{T}{T_{\text{max}}}, 100\right) = \min\left(100 \cdot \frac{2.86}{24}, 100\right) = 11.92 \ \% \\]

Result: Gross Burn Rate: 35000 USD/month, Net Burn Rate: 35000 USD/month, Runway: 2.86 months, Efficiency Score: 11.92%

Example 2: Growing Startup, Moderate Revenue

Input: Employee Costs = 30000 USD/month, Operational Costs = 15000 USD/month, Marketing Expenses = 10000 USD/month, Monthly Revenue = 20000 USD/month, Cash Reserves = 200000 USD, Additional Funding = 50000 USD

\\[ B_g = E + O + M = 30000 + 15000 + 10000 = 55000 \ \text{USD/month} \\] \\[ B_n = B_g – R = 55000 – 20000 = 35000 \ \text{USD/month} \\] \\[ T = \frac{C + F}{B_n} = \frac{200000 + 50000}{35000} = 7.14 \ \text{months} \\] \\[ S = \min\left(100 \cdot \frac{T}{T_{\text{max}}}, 100\right) = \min\left(100 \cdot \frac{7.14}{24}, 100\right) = 29.75 \ \% \\]

Result: Gross Burn Rate: 55000 USD/month, Net Burn Rate: 35000 USD/month, Runway: 7.14 months, Efficiency Score: 29.75%

Example 3: Mature Startup, High Revenue

Input: Employee Costs = 50000 USD/month, Operational Costs = 20000 USD/month, Marketing Expenses = 15000 USD/month, Monthly Revenue = 80000 USD/month, Cash Reserves = 500000 USD, Additional Funding = 100000 USD

\\[ B_g = E + O + M = 50000 + 20000 + 15000 = 85000 \ \text{USD/month} \\] \\[ B_n = B_g – R = 85000 – 80000 = 5000 \ \text{USD/month} \\] \\[ T = \frac{C + F}{B_n} = \frac{500000 + 100000}{5000} = 120 \ \text{months} \\] \\[ S = \min\left(100 \cdot \frac{T}{T_{\text{max}}}, 100\right) = \min\left(100 \cdot \frac{120}{24}, 100\right) = 100 \ \% \\]

Result: Gross Burn Rate: 85000 USD/month, Net Burn Rate: 5000 USD/month, Runway: 120 months, Efficiency Score: 100%